Notices of Default numbers and Foreclosure Sales have really tapered off since the new schwarzenegger law took effect in early Sept. that forces banks into attempts to contact the homeowner. Has the pipeline only temporarily been squeezed? As banks re-adjust and implement new systems, it will be interesting to see if it has any long-lasting affect on the market.

It looks like short sales and loan modifications will be the new buzz for 2009. Not to say our market is in recovery, or that people will not be moving around, just that banks and servicers will find other solutions besides taking more inventory at foreclosure auctions.